Is the commission split we post the commission that we are offering the co-broker or our total commission?

In Selling Property - Asked by Joe L. - Oct 2, 2010
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Answer(s)

Mark L.
Broker/Agent
Northbrook, IL

The commission you are offering other brokers. Not total commission.

Oct 3, 2010
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Brad F.
Broker/Agent
Redlands, CA

By posting and offering a commission split you are only offering the cooperating broker's share of the commission which is traditionally 50% of the total commission the Seller is willing to pay according to your Listing or Commission Agreement.
Cooperating with other brokers and sharing commission split "opportunities" is good practice. However, especially in the case of short sales, and also in this volatile market, it is also good practice to offer a disclaimer that states "actual commission split shared is dependent on a full-price offer, and subject to Seller's final approval".
If you lead with better information you will be less likely to get caught short on your own commission. A perfect example of this is in a Short Sale a bank might decrease the commission to 5% overall upon Short Sale Approval Letter. If you offered 3% because you have a 6% Listing Agreement, you could find yourself in a dispute with the other cooperating broker demanding 3% which subjects to you 2% only.

Oct 4, 2010
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Joe L.
Broker/Agent
Dallas, TX

There's another aspect to talking about commissions. If you talk about commission payable to another broker (the current custom), you're pretty safe. If you start mentioning the TOTAL commission, it possibly opens you up charges of price fixing and restraint of trade in conspiracy with other brokers. In the late 70's we used to do weekly real estate breakfasts. The hosting broker would always get up and warn people not to talk about total commissions. He went to the extent of saying that if anyone mentioned total commissions, he would close the breakfast and vacate the room. Whether he was being over-cautious or not, it still sounds like good advice 35 years later.

Oct 7, 2010
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